BILL NUMBER: SB 894 AMENDED
BILL TEXT
AMENDED IN SENATE FEBRUARY 14, 2014
INTRODUCED BY Senator Corbett
JANUARY 13, 2014
An act to amend Section 1569.525 of the Health and Safety Code,
relating to residential care facilities for the elderly.
LEGISLATIVE COUNSEL'S DIGEST
SB 894, as amended, Corbett. Residential care facilities for the
elderly: revocation of license.
Existing law, the California Residential Care Facilities for the
Elderly Act, provides for the licensure and regulation of residential
care facilities for the elderly. These provisions are administered
by the State Department of Social Services. Violation of these
provisions is a misdemeanor.
Existing law requires, if the Director of Social Services
determines that it is necessary to temporarily suspend a license of a
residential care facility for the elderly in order to protect the
residents or clients of the facility from physical or mental abuse,
abandonment, or any other substantial threat to health or safety, the
department to make every effort to minimize trauma for the
residents. Existing law authorizes and requires the department, in
the event of a temporary license suspension or revocation, to comply
with specified procedures relating to the transfer of residents,
including requiring the department to contact and work with any local
agency that may have placement or advocacy responsibility for the
residents of a residential care facility for the elderly, as
specified, to locate alternative placement sites and contact
responsible relatives. Existing law requires, upon an order to revoke
a license, a licensee to provide a 60-day written notice of license
revocation that may lead to closure to the resident and the resident'
s responsible person within 24 hours of receipt of the department's
order of revocation. Existing law requires a resident who transfers
from the facility during that 60-day period to be entitled to a
refund of preadmission fees in accordance with specified provisions.
This bill would require, if the Director of Social Services
determines at any time during relocation of residents that it is
necessary to protect the residents or clients of the facility from
physical or mental abuse, abandonment, or any other substantial
threat to health or safety, the department to take any necessary
action to minimize trauma for the residents, including, but not
limited to, preparing the residents' records and medications for
transfer and checking in on the status of all transferred residents
within 24 hours of transfer. The bill would additionally require the
department to contact the Office of the State Long-term
Long-Term Care Ombudsman to locate alternative
placement sites for residents. The bill would also require, upon an
order to suspend a license, a licensee to provide a 60-day written
notice of license suspension to the resident or resident's
responsible person within 24 hours of receipt of the
departments department's order of suspension and
would require the residents who transfer during the 60-day
period a resident who transfers due to the resident
being issued a 60-day notice to be entitled to a refund of
preadmission fees.
This bill would prohibit, upon receipt of an order to suspend or
revoke a license, a licensee from accepting new residents or entering
into admission agreements for new residents. The bill would
generally make a licensee who fails to comply with the requirements
of these provisions liable for civil penalties in the amount of $500
per violation per day for each day that the licensee is in violation
of these provisions until the violation has been corrected. The bill
would authorize a current or former resident of a residential care
facility for the elderly covered under these provisions to bring a
civil action against any person, firm, partnership, or corporation
who owns, operates, establishes, manages, conducts, or maintains a
residential care facility for the elderly who violates the specified
rights of a resident.
By expanding the definition of a crime, this bill would impose a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1569.525 of the Health and Safety Code is
amended to read:
1569.525. (a) If (1)
If the director is reasonably contemplating a
temporary suspension or revocation of any license, the department
shall provide the Office of the State Long-Term Care Ombudsman with a
precautionary notification so that the office may properly prepare
to intervene if and when necessary.
(2) If the director determines
that it is necessary to temporarily suspend or to revoke any license
of a residential care facility for the elderly in order to protect
the residents or clients of the facility from physical or mental
abuse, abandonment, or any other substantial threat to health or
safety pursuant to Section 1569.50, the department shall make every
effort to minimize trauma for the residents.
(b) The department shall contact the Office of the State Long-Term
Care Ombudsman and any local agency that may have placement or
advocacy responsibility for the residents of a residential care
facility for the elderly after a decision is made to temporarily
suspend or to revoke the license of the facility and prior to its
implementation. The department shall work with these agencies, and
the licensee if the director determines it to be appropriate, to
locate alternative placement sites and to contact relatives
responsible for the care of these residents.
(c) The department shall use physicians and surgeons and other
medical personnel deemed appropriate by the department to provide
onsite evaluation of the residents and assist in any transfers.
(d) The department shall require the licensee to prepare and
submit to the licensing agency a written plan for relocation and
compliance with the terms and conditions of the approved plans, and
to provide other information as necessary for the enforcement of this
section.
(e) Upon receipt of an order to suspend or revoke a license, the
licensee shall be prohibited from accepting new residents or entering
into admission agreements for new residents.
(f) Upon an order to suspend a license, the licensee shall provide
a 60-day written notice of the license suspension to the resident or
resident's responsible person within 24 hours of receipt of the
department's order of suspension.
(g) Upon an order to revoke a license, the following shall apply:
(1) The licensee shall provide a 60-day written notice of license
revocation that may lead to closure to the resident and the resident'
s responsible person within 24 hours of receipt of the department's
order of revocation.
(2) The department shall permit the licensee to secure the
services of a person who is not an immediate family member of the
licensee or an entity that is not owned by the licensee to manage the
day-to-day operations of the residential care facility for the
elderly for a period of at least 60 days, provided that all of the
following conditions are met:
(A) A proposal is submitted to the department within 72 hours of
the licensee's receipt of the department's order of revocation that
includes both of the following:
(i) A completed "Application for a Community Care Facility or
Residential Care Facility for the Elderly License" form (LIC 200), or
similar form as determined by the department, signed and dated by
both the licensee and the person or entity described in paragraph
(2).
(ii) A copy of the executed agreement between the licensee and the
person or entity described in paragraph (2) that delineates the
roles and responsibilities of each party and specifies that the
person or entity described in paragraph (2) shall have the full
authority necessary to operate the facility, in compliance with all
applicable laws and regulations, and without interference from the
licensee.
(B) The person or entity described in paragraph (2) shall be
currently licensed and in substantial compliance to operate a
residential care facility for the elderly that is of comparable size
or greater and has comparable programming to the facility. For
purposes of this subparagraph, the following definitions apply:
(i) "Comparable programming" includes, but is not limited to,
dementia care, hospice care, and care for residents with exempted
prohibited health care conditions.
(ii) "Comparable size" means a facility capacity of 1 to 15
residents, 16 to 49 residents, or 50 or more residents.
(C) The person or entity described in paragraph (2) shall not be
subject to the application fee specified in Section 1569.185.
(D) If the department denies a proposal to secure the services of
a person or entity pursuant to paragraph (2), this denial shall not
be deemed a denial of a license application subject to the right to a
hearing under Section 1569.22 and other procedural rights under
Section 1569.51.
(3) (A) Notwithstanding Section 1569.651 or any other law, for
paid preadmission fees, a resident who transfers from the facility
during the 60-day period after the issuance of an order to
suspend or revoke the license due to the resident
being issued a 60-day notice pursuant to subdivision (f) or paragraph
(1), is entitled to a refund in accordance with all of the
following:
(i) A 100-percent refund if preadmission fees were paid within six
months of the notice of closure required by paragraph (1) or
subdivision (f).
(ii) A 75-percent refund if preadmission fees were paid more than
6 months, but not more than 12 months, before the notice of closure
required by paragraph (1) or subdivision (f).
(iii) A 50-percent refund if preadmission fees were paid more than
12 months, but not more than 18 months, before the notice of closure
required by paragraph (1) or subdivision (f).
(iv) A 25-percent refund if preadmission fees were paid more than
18 months, but not more than 25 months, before the notice of closure
required by paragraph (1) or subdivision (f).
(B) No preadmission fee refund is required if preadmission fees
were paid 25 months or more before the notice of closure required by
paragraph (1) or subdivision (f).
(C) The preadmission fee refund required by this paragraph shall
be paid within 15 days of issuing the notice of closure required by
paragraph (1) or subdivision (f). In lieu of the refund, the resident
may request that the licensee provide a credit toward the resident's
monthly fee obligation in an amount equal to the preadmission fee
refund due.
(4) If a resident transfers from the facility during the 60-day
period after the issuance of an order to suspend or revoke the
license, and the resident gives notice at least five days before
leaving the facility, the licensee shall refund to the resident or
his or her legal representative a proportional per diem amount of any
prepaid monthly fees at the time the resident leaves the facility
and the unit is vacated. Otherwise the licensee shall pay the refund
within seven days from the date that the resident leaves the facility
and the unit is vacated.
(5) Within 24 hours after all residents who are transferring
pursuant to these provisions have left the facility, the licensee
that had his or her license revoked shall, based on information
provided by the resident or the resident's legal representative,
submit a final list of names and new locations of all residents to
the department and the local ombudsman program.
(h) If at any point during the relocation process the director
determines that it is necessary to protect the residents of a
facility from physical or mental abuse, abandonment, or any other
substantial threat to health or safety, the department shall take any
necessary action to minimize trauma for the residents. The
department is responsible for the health and safety of all residents
until all residents have been appropriately placed. These
responsibilities shall include, but not be limited to, all of the
following:
(1) Contact any local agency that may have placement or advocacy
responsibility for the residents, and work with those agencies to
locate alternative placement sites.
(2) Contact the residents' relatives, legal representatives,
authorized agents in a health care directive, or responsible parties.
(3) Assist in the transfer of residents, and, if necessary,
arrange or provide transportation.
(4) Provide onsite evaluation of the residents and use any medical
personnel deemed appropriate by the department to provide onsite
evaluation of the residents and assist in any transfers.
(5) Arrange for or provide care and supervision.
(6) Distribute medications.
(7) Arrange for the preparation and service of meals and snacks.
(8) Prepare the residents' records and medications for transfer of
each resident.
(9) Assist in any way necessary to facilitate a safe transfer of
all residents.
(10) Check on the status of all each
transferred residents within 24 hours of transfer.
(i) The participation of the department and local agencies in the
relocation of residents from a residential care facility for the
elderly shall not relieve the licensee of any responsibility under
this section. A licensee that fails to comply with the requirements
of this section shall be required to reimburse the department and
local agencies for the cost of providing these services. If the
licensee fails to provide the services required in this section, the
department shall request that the Attorney General's office, the city
attorney's office, or the local district attorney's office seek
injunctive relief and damages.
(j) Notwithstanding Section 1569.49, a licensee who fails to
comply with the requirements of this section shall be
liable for civil penalties in the amount of five hundred dollars
($500) per violation per day for each day that the licensee is in
violation of this section, until the violation has been corrected.
The civil penalties shall be issued immediately following the written
notice of violation. However, if the violation does not
present an immediate or substantial threat to the health and safety
of residents and the licensee corrects the violation within three
calendar days after receiving the notice of the violation, the
licensee shall not be liable for payment of any civil penalties
pursuant to this subdivision related to the corrected violation.
(k) A current or former resident of a residential care facility
for the elderly covered under this section, may bring a civil action
against any person, firm, partnership, or corporation who owns,
operates, establishes, manages, conducts, or maintains a residential
care facility for the elderly who violates the rights of a resident,
as set forth in this section. Any person, firm, partnership, or
corporation who owns, operates, establishes, manages, conducts, or
maintains a residential care facility for the elderly who violates
this section shall be responsible for the acts of the
facilities facility employees and shall be
liable for costs and attorney's fees. The residential care facility
for the elderly may also be enjoined from permitting the violation to
continue. The remedies specified in this section shall be in
addition to any other remedy provided by law.
(l) This section shall not preclude the department from amending
the effective date in the order of the suspension or revocation of a
license and closing the facility, or from pursuing any other
available remedies if necessary to protect the health and safety of
the residents in care.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.